What is Funding fees?
A perpetual contract has no delivery date nor expiry date. In order to prevent the "latest price" deviating from the spot price, XT.COM needs to anchor the contract price to the spot price through the "Funding Fee Mechanism".
The contract is settled every 8 hours at the end of each period at 16:00 (UTC), 00:00 (UTC), and 08:00 (UTC) during the day. Funds fees are incurred at the time of settlement, and only users who hold positions at the time of settlement need to pay for fund fees; if the position has been closed before settlement, there is no charge of funds.
How to check "Funding Rate" ?
Traders can see the current funding rate of the market in the "Funding Rate" column on the top right corner of the market page. For historical rates, please refer to “Funding Rate History”.
Calculation of funding Rate
Funding Rate = Average Premium Index + clamp((Interest Rate - Average Premium Index), -0.05%, 0.05%)
- Premium Index = [(Best Bid Price + Best Offer Price ) / 2 - Spot Index Price] / Spot Index Price, calculated every minute
- Average Premium Index = (1 * Premium Index_1 + 2 * Premium Index_2 + 3 * Premium Index_3 + ... + n * Premium Index_n) / (1 + 2 + 3 + ... + n)
Premium Index_1: The first premium index data, calculated over the past N hours, where N is the funding interval, and the number of n is N*60.
Please note that the funding rate here represents an estimate of the premium index over the past 8 hours. For example, starting from 09:00 UTC, the calculation of the funding rate will use the premium index data from 01:00 UTC to 09:00 UTC (instead of from 08:00 UTC to 09:00 UTC).